Crude from the Bakken shale weakened against West Texas Intermediate with production at a 23-year high and as Marathon Petroleum Corp. prepared to start maintenance at its Catlettsburg, Kentucky, refinery.
Bakken fell $1 a barrel to a discount of $7.50 against the domestic benchmark at 12:05 p.m. New York time, according to data compiled by Bloomberg.
Increased output from shale formations including the Bakken and the Eagle Ford in southern Texas helped U.S. oil production reach 7.75 million barrels a day in the week ended Sept. 6, the most since May 1989, Energy Information Administration data showed on Friday.
Two state filings showed that the Kentucky refinery was scheduled to shut a distillate desulfurization unit today, a hydrogen system tomorrow and a crude unit and several others on Sept. 23. A fluid catalytic cracker was expected to shut Sept. 15 for 45 days of work, a person familiar with the refinery’s operations said last week. Marathon moves crude to Catlettsburg by pipeline from Patoka, Illinois.
Jamal Kheiry, a spokesman for Marathon in Findlay, Ohio, declined to comment on the maintenance plans.
Oils produced in the Gulf Coast were mixed against WTI. Light Louisiana Sweet gained 5 cents a barrel to a premium of $1.20. Heavy Louisiana Sweet weakened by 5 cents to a $1.30 premium.
Southern Green Canyon dropped 15 cents to a $6.40 discount. Eugene Island fell 25 cents to a discount of $1.
Poseidon’s discount narrowed 25 cents to $4. Mars Blend’s discount narrowed 10 cents to $3.40.